Financial Data and Key Metrics Changes - In Q2 2025, total revenue was $40.2 million, driven by strong FWA volumes and a large channel deal, marking a sequential growth in both revenue and adjusted EBITDA [19][20] - Non-GAAP gross margin was 41.2%, reflecting a favorable product mix and strong FWA results [20] - Adjusted EBITDA for Q2 was $4.7 million, up 29% sequentially, achieving an 11.7% margin, the second highest in a decade [21] Business Line Data and Key Metrics Changes - FWA revenue surpassed mobile hotspot revenue for only the second time in the company's history, indicating a successful ramp of the new FX4100 product [20] - Mobile revenue decreased year-over-year due to record promotional activity in 2024 and the timing of new program launches expected later in 2025 [20] - Services revenue remained consistent at $12 million for the quarter, providing stable, high-margin contributions [20] Market Data and Key Metrics Changes - The FX4100 product launched in mid-Q2 exceeded expectations with strong early demand, reflecting the expanding total addressable market (TAM) in the enterprise FWA market [10][12] - The company secured notable wins with enterprise customers, including a multi-million dollar agreement with an S&P 500 company [12][30] Company Strategy and Development Direction - The company is focused on transforming into a solutions provider by investing in software, APIs, and platform intelligence, aiming for greater value creation and sustainable growth [7][13] - The growth strategy is anchored by two vectors: scaling the core mobile and FWA business and evolving into a solutions company [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sequential revenue growth for the next two quarters, supported by the ramp of the FX4100 product and mobile revenue growth [15][24] - The company aims to exit the year with a strong run rate business to support sustainable growth [15] Other Important Information - The company ended Q2 with $13.2 million in cash and a total debt of $41 million, providing flexibility for growth initiatives [22] - A $15 million working capital facility was established to enhance operational flexibility [22] Q&A Session Summary Question: Can you elaborate on the multimillion dollar enterprise agreement with the industrial S&P 500 company? - The deal was facilitated through the Inseego IGNITE channel program, emphasizing the importance of both hardware and software in the value proposition [30] Question: How much of the Q3 revenue and EBITDA guidance is associated with the business pulled from the forecast? - The guidance does not include any assumptions regarding the $10 million deal that was removed from the forecast [32][33] Question: What are the factors influencing the Q3 revenue guidance range? - The variability in the Q3 guidance is related to the business opportunities expected to close in the channel, with no significant macroeconomic assumptions impacting it [34][35] Question: Can you provide details on the mechanics of the enterprise win and revenue recognition? - The specific deal mentioned was for Q2, and the company is working on a pipeline for Q3 and beyond [41] Question: How should investors think about cash flows with the increase in accounts receivable? - The increase in accounts receivable is due to the ramp-up in demand for the new FX4100 product, and the company aims to drive cash flow while investing in inventory [42][43] Question: What potential catalysts can be expected for the FX4100 launch? - The unique combination of performance, technology leadership, and ease of deployment are key factors driving the FX4100's market impact [45] Question: Is there a path to monetizing the expanding software and services feature set? - Yes, the company is investing in software functionality and expects to yield higher revenue from these services moving forward [50][51]

Financial Data and Key Metrics Changes - In Q1 2025, revenue was impacted by delayed carrier promotions and FWA orders, but adjusted EBITDA exceeded expectations, indicating strong cost management despite softer hardware volumes [5][21] - Non-GAAP gross margin reached a record 47.5%, driven by a favorable revenue mix and sequential margin expansion in both product and services [22] - Adjusted EBITDA for Q1 2025 was $3.7 million, more than double the prior year quarter, with an adjusted EBITDA margin of 11.6% [23] Business Line Data and Key Metrics Changes - Mobile hotspot revenue grew over 16% year-over-year, while services revenue increased nearly 50% year-over-year, primarily due to the strength of the subscribed SaaS platform [21][22] - The company is focusing on expanding its FWA and MiFi business, with new product plans introduced to diversify its customer base [9][10] Market Data and Key Metrics Changes - The company is targeting large Tier one carriers and multiple system operators (MSOs) to expand its market presence, indicating a shift towards a broader customer base [9][10] - The competitive landscape remains challenging, but the company believes its American-based IP and improved operational efficiency position it well against competitors [39] Company Strategy and Development Direction - The company is transitioning from a hardware-centric model to a full solution provider, focusing on software-defined wireless networking solutions [8][14] - Key strategic initiatives include scaling the FWA and MiFi business and accelerating the software and services roadmap to enhance its solution offerings [8][14] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the business prospects for 2025, expecting sequential revenue growth starting in Q2, particularly in FWA revenue [26] - The company is actively managing its supply chain and operational efficiency to mitigate potential disruptions from the macroeconomic environment [12][39] Other Important Information - The company successfully reduced its total debt to $41 million after paying off $15 million in convertible notes [24] - The leadership team has been strengthened with new talent, including George Mulhern, former CEO of Cradlepoint, to support the company's transformation [17] Q&A Session Summary Question: Concerns about pipeline opportunities slipping into 2026 - Management does not see any movement of the pipeline from their customer base, particularly among large North American carriers [30] Question: Potential revenue upside from the T-Mobile Partner Plus program - The partnership with T-Mobile is expected to create pull on the channel program products through investment subsidies [31] Question: Free cash flow expectations for 2025 - Management targets positive free cash flow for the year, with expectations for improvement in the second half [32] Question: Update on channel strategy and potential large deals - Confidence in closing a large channel deal within the quarter, with ongoing investments in broadening the solution portfolio [35][36] Question: Competitive landscape and geopolitical impacts - The company believes its operational efficiency and American-based IP provide a competitive edge despite geopolitical challenges [39] Question: Long-term gross margin targets and operating expenses - Management has not provided a specific target model yet but anticipates gross margins in the high 30s, depending on the mix of software and product revenue [40][42]

Core Insights - Nokia has launched Aurelis Optical LAN, a next-generation fiber-based LAN solution aimed at enhancing enterprise connectivity for in-building and campus environments [1][8] - The Optical LAN technology offers significant advantages over traditional copper-based networks, including reduced cabling and power requirements, as well as lower total cost of ownership [2][8] Group 1: Product Features and Benefits - Aurelis Optical LAN requires up to 70% less cabling and 40% less power compared to traditional copper-based LAN networks [2][8] - The solution has a lifespan of over 50 years, enabling up to 50% reduction in total cost of ownership (TCO) [2][8] - It supports current speeds of 1Gb/s, 10Gb/s, and 25Gb/s, with a clear upgrade path to 50Gb/s and 100Gb/s, ensuring readiness for future demands [3][5] Group 2: Market Adoption and Use Cases - Nokia's Optical LAN technology has been adopted in over 700 installations across various sectors, including hotels, university campuses, airports, and hospitals [4][8] - The deployment of Optical LAN is seen as a strategic move for organizations to modernize connectivity and support high-performance applications like Wi-Fi 7 [5][8] Group 3: Company Vision and Strategy - Nokia emphasizes the importance of simplicity, reliability, and scalability in its Aurelis Optical LAN solution, positioning it as a future-proof foundation for enterprise connectivity [5][8] - The company aims to create technology that fosters collaboration and innovation, leveraging its expertise in mobile, fixed, and cloud networks [6][7]

Core Insights - Nokia has launched Aurelis Optical LAN, a next-generation fiber-based LAN solution aimed at enhancing enterprise connectivity and designed for future demands [1][8] - The Optical LAN technology significantly reduces cabling requirements by up to 70% and power consumption by 40% compared to traditional copper-based networks, while offering a lifespan exceeding 50 years and a potential 50% reduction in Total Cost of Ownership (TCO) [2][8] Product Features - Aurelis Optical LAN supports current speeds of 1Gb/s, 10Gb/s, and 25Gb/s, with an upgrade path to 50Gb/s and 100Gb/s, ensuring readiness for future bandwidth needs [3] - The solution includes open APIs for seamless integration with existing enterprise environments and advanced automation features to simplify operations [3] - It boasts six-nines availability and robust security, making it suitable for high-bandwidth applications like Wi-Fi 7 [3] Market Adoption - Nokia's Optical LAN technology has been implemented in over 700 installations across various sectors, including hotels, university campuses, airports, and hospitals, demonstrating its global reach and effectiveness [4][8] - The deployment of Optical LAN is seen as a strategic move for organizations to modernize their connectivity infrastructure, providing a reliable backbone for various applications while reducing power and cabling needs [5]